Cabo Verde VAT Guide 2026

Overview — IVA in Cabo Verde

IVA in Cabo Verde is governed by the Código do Imposto sobre o Valor Acrescentado (CIVA) and administered by the Direção Nacional de Receitas do Estado (DNRE). The tax applies to the supply of goods and services by registered persons in the course of business, and to imports. Cabo Verde operates a standard input-output VAT system where registered businesses can deduct input IVA on business purchases against output IVA collected. Businesses exceeding the registration threshold must register for IVA. Voluntary registration is permitted for businesses below the threshold. The tax year is the calendar year, and IVA returns are filed monthly or quarterly depending on turnover.

IVA Rate Structure

Cabo Verde applies two IVA rates depending on the type of supply:

• Standard rate — 15% — applies to most goods and services including manufactured products, retail sales, professional services, telecommunications, construction, and hospitality
• Zero rate — 0% — applies to basic foodstuffs (rice, bread, milk, cooking oil, sugar), medicines and medical equipment, books and educational materials, agricultural inputs, exports of goods and services, and international transport

Certain goods and services are exempt from IVA including medical services, educational services, financial services (banking, insurance), residential rent, and public transport. Exempt supplies are not subject to IVA but the supplier cannot reclaim input IVA on related purchases. Unlike some other jurisdictions, Cabo Verde does not have an intermediate reduced rate.

Registration Threshold

Businesses whose annual taxable turnover exceeds the registration threshold must register for IVA with DNRE. The threshold applies to turnover from taxable supplies. Once registered, the business must charge IVA on all taxable supplies, issue IVA invoices, and file regular returns. Businesses below the threshold may voluntarily register, which allows them to reclaim input IVA. Non-resident businesses supplying digital services to Cabo Verdean consumers may also have registration obligations.

IVA Filing & Payment

IVA-registered businesses must file returns monthly or quarterly depending on their turnover level. The IVA return reports output IVA (IVA collected on sales) and input IVA (IVA paid on purchases). If output IVA exceeds input IVA, the difference is payable to DNRE. If input IVA exceeds output IVA, the excess may be carried forward or refunded in certain circumstances. Late filing attracts penalties and interest. DNRE conducts regular IVA audits. Electronic filing is available through the DNRE online portal.

FAQs

Do I need to charge IVA if my turnover is below the threshold?

No, registration is only compulsory when annual turnover exceeds the threshold. Businesses below the threshold may voluntarily register. Unregistered businesses must not charge IVA on their invoices.

Can I recover input IVA paid on business purchases?

Yes, IVA-registered businesses can claim input IVA on purchases used for taxable supplies. Input IVA is netted against output IVA in the periodic return. Capital goods and operating expenses both qualify.

What is the penalty for late IVA filing?

Late filing attracts a penalty of a percentage of the tax due plus monthly interest on unpaid amounts. Continued non-compliance may result in business closure orders or suspension of the NIF.

Disclaimer

This guide provides general information about Cabo Verdean IVA for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Cabo Verdean tax advisor or the Direção Nacional de Receitas do Estado for advice specific to your situation. InvestmentKit does not provide tax advice.